Smash Notes
Why Do Angels Make Better Early Investors Than Venture Capitalists
VC funds invest large amounts of other people's money, and often are run by money-managers who have to invest in entrepreneurs that look the part.
Angels are often exited startup founders themselves, and invest small amounts of their own money, largely on a gut instinct. Unlike VCs, Angels don't care if their investment does not look "right" to others.
The best new ideas often sound crazy. Google and Facebook, for example, had to first raise money from angels because all the VCs told them "NO."
EconTalk Archives, 2009
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Graham on Start-ups, Innovation, and Creativity
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at 16:27
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·Transcript
On this episode
- Who Is Paul Graham Transcript
- What Is Y Combinator Transcript
- How Successful Was Y Combinator Aiming To Become Transcript
- Why Was Y Combinator Successful At Funding An Unusually Large Number Of Startups Transcript
- How Does Y Combinator Use Software To Screen Applicants Transcript
- What Happens At A Y Combinator Interview Transcript
- How Successful Was The Very First Batch Of Y Combinator Transcript
- Why Are We Seeing Growing Number Of Startups Transcript
- Why Do Angels Make Better Early Investors Than Venture Capitalists Transcript
- When Should You Launch Your Startup Transcript
- Who Should Be Startup's Early Users Transcript
- When Does Y Combinator End Transcript
- Did The Recession Have Any Impact On The Y Combinator Deal Flow Transcript
- What Are The Similarities Between Hackers And Painters Transcript
- In Which Ways Should Founders Be More Like Artists Transcript
- What Makes For A Great Hacker Transcript
- What Is One Problem That Every Hacker Struggles With Transcript
- What Was Paul Graham's View On Facebook And Twitter In 2009 Transcript
- What Is The Best Economic Policy For The United States Transcript
- What Is The Best Way To Survive High-school Transcript
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